Incomes of Russians on decline

November 12, 2013, 10:33
updated at: November 12, 2013, 12:37 UTC+3World Service)
¶ 12/11 Tass
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¶ The incomes of Russians are on decline
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¶ According to the Russian State Statistics ServiceReal incomes of Russian citizens decreased by 1.3% as compared with the same period in the previous year in September

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According to the Russian State Statistics Service, real incomes of Russian citizens decreased by 1.3% as compared with the same period in the previous year in September. Meanwhile, the growth of bank deposits slowed down, and a downward tendency is observed in the Russian carmaking. The opinion of experts vary: some of them say about a new stage of crisis, some others named the decline of incomes short-term.

According to the sociological surveys of the Central Bank and the Public Opinion Foundation (FOM), 88% of Russians say about the growth of prices, meanwhile, 56% stated that their incomes did not grow at all or went up at the pace falling behind the inflation rate amid the growth of prices, Novye Izvestia daily reported. No special improvements are expected. Next year the Ministry of Economic Development expects the growth of incomes of people at 4-5% at most, while the official inflation rate will not go down lower than current six percent. However, these expectations are also too optimistic, specialists believe. “The economy is stagnating,” head of the Centre of Life Level Vyacheslav Bobkov stated. “Not one such year is expected. Therefore, we should expect only increasingly tighter and lower expenditures for the remuneration from the authorities. Already now the government cancels the adjustment of the salary of a larger part of budget-financed employees to the inflation rate. The minimal salary makes only 70% from the subsistence minimum; the unemployment allowances remain unchanged as several years ago.

In another article the daily reports about price growth on the food market, which causes growing concerns. In the previous week the Federal Anti-Monopoly Service initiated an investigation on suspicion of possible conspiracy of more than 80 enterprises, which raise poultry and are engaged in wholesale and retail egg sale.

The problem was not limited only with the egg sale. The price on potatoes grew steeply, and the Russian agricultural watchdog even said it is ready to lift partially the ban on potato imports from the European Union. Meanwhile, according to the Russian State Statistics Service, the prices on milk and vegetables have skyrocketed for the past month.

In the current situation the price growth on food products do not only form a negative situation, but also mounts social tension, Novye Izvestia daily noted.

Experts polled by Nezavisimaya Gazeta daily hope that after all it is early to say about a long-term falling tendency of incomes to begin. “The September reduction of incomes by 1.3% should be estimated as the beginning of a long negative tendency, because this is only local decline. As however the incomes of people went up 3.6% for January-September 2013,” deputy director of the analytical department of the company Alpari Darya Zhelannova noted.